Eurenco to Sell Vihtavuori Plant, But Production Should Continue

Eurenco (European Energetics Corporation) is a French company owned by the SNPE Group. Eurenco specializes in production of propellants and explosives. Eurenco currently owns and operates five modern production plants in Belgium (Clermont), Finland (Vihtavuori), France (Bergerac, Sorgues) and Sweden (Bofors AB, Karlskoga). Readers are doubtless familiar with Vihtavuori powders, which are marketed and distributed by the Nammo Lapua group based in Finland. Though Nammo Lapua distributes Vihtavuori powder, Eurenco actually owns the Vihtavuori factory located in Vihtavuori, Finland.

Eurenco Looks for Buyer for Vihtavuori Plant
On June 18, Eurenco stated that it is “considering” selling the Vihtavuori Ltd. production facility to a third party. This factory currently employs 100 workers, and has annual revenues of $15 million Euros.

Eurenco hopes to sell the plant to a Finnish company, and we are informed that at least one investment group from Finland is interested. Eurenco revealed no immediate plans to shut the facility or to curtail production while Eurenco seeks a buyer. However, Eurenco said that the primary reason for selling the plant was reduced military demand for Vihtavuori products in recent years.

No Change in Vihtavuori Powder Distribution in USA
We discussed the potential Vihtavuori factory sale with Adam Braverman, U.S. representative for Nammo Lapua. Adam first noted that Nammo Lapua is NOT a potential buyer for the plant: “That’s not on the table.” But Adam emphasized that he forsees no changes to the current Vihtavuori distribution scheme: “Vihtavuori powder buyers should expect ‘business as usual’. We do not forsee any price or product availablity changes in the short term. There is plenty of powder inventory available, so we can fill all existing demands through the end of 2012.” While Eurenco looks for a new owner of the Vihtavuori plant, there will be no changes to the current system of distribution of Vihtavuori powders in the USA. Adam said: “There is plenty of powder in the European warehouses, and Nammo Lapua will continue to export Vihtavuori propellants to the USA importers (Hodgdon and Kaltron) who will distribute them to our retailers. We do not anticipate any supply shortages.”